More than 150,000 workers lost their jobs this year because of layoffs across the tech landscape since June. Ongoing news cycles have analyzed every aspect of these workforce cuts for significance and lessons. How did we get here? How do companies manage their employees? Are there more layoffs on the way?
And, crucially, what’s next for technology? Investors now demand profitability over growth. This extreme change in the business model that investors want has left companies with tough decisions and no playbook. Without the freedom afforded by a cheap capital environment, new ventures that promise uncertain returns are a thing of the past for investors, or at least a much smaller focus.
What every business needs now is efficient sales.
But there’s a big difference between knowing you need efficient revenue and knowing how to get it. Smaller teams, fewer resources, and a tough macro environment are forcing CROs to make major changes to budgets, staffing, and how they market and sell.
But maintaining revenue while the CFO cuts costs by 5%-20% is no easy task for anyone – and more of the same won’t help you.
The unfortunate truth is that unless you move beyond the same old buying group, you’re not going to move the needle.
The biggest mistakes to avoid
Preliminary data from Databook shows that an unusually high percentage of companies worldwide are shifting their strategic priorities. Since these are typically multi-year commitments, this unprecedented shift is dramatically changing the sales landscape for tech startups.
Sticking to traditional sales incentives and levers won’t deliver the incremental change needed to win.
Don’t raise prices
Most startups rely on VC funding and in today’s market, VCs are looking for a clear path to profitability. A seemingly “easy” way to improve margins is to raise prices.
This is a solution you can only try once; you don’t want to keep raising prices in a competitive market. This is a temporary solution at best and can easily backfire, as higher prices during a recession can erode customer confidence in the long run. It can also result in fewer renewals when less budget is available.